DoD Awards Northrop Grumman $38.4M for Air Transport Services, Ending April 2026
Contract Overview
Contract Amount: $38,426,272 ($38.4M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2022-09-30
End Date: 2026-04-10
Contract Duration: 1,288 days
Daily Burn Rate: $29.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Transportation
Official Description: STP-S29A MISSION TASK ORDER
Place of Performance
Location: CHANDLER, MARICOPA County, ARIZONA, 85286
State: Arizona Government Spending
Plain-Language Summary
Department of Defense obligated $38.4 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: STP-S29A MISSION TASK ORDER Key points: 1. Significant contract value for specialized air transportation. 2. Competition method indicates a potentially competitive market. 3. Risk is moderate due to fixed-price contract type. 4. Sector is transportation, specifically air freight.
Value Assessment
Rating: good
The contract value of $38.4M over approximately 4 years suggests a reasonable price for specialized air transportation services. Benchmarking against similar contracts for nonscheduled chartered freight would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. This method generally leads to better price discovery and potentially lower costs for the government.
Taxpayer Impact: The competitive award process is expected to yield fair pricing, maximizing taxpayer value for essential transportation services.
Public Impact
Ensures critical cargo movement for the Air Force. Supports national defense logistics and readiness. Potential for economic activity in the air cargo sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Contract duration is substantial.
- No small business participation noted.
Positive Signals
- Awarded under full and open competition.
- Firm fixed-price contract type.
Sector Analysis
This contract falls within the transportation sector, specifically nonscheduled chartered freight air transportation. Spending in this area is crucial for military logistics and can fluctuate based on operational needs and global events.
Small Business Impact
The data indicates that small businesses were not directly involved in this specific contract award. Further analysis would be needed to determine if subcontracting opportunities exist or if this is a trend in this service area.
Oversight & Accountability
The Department of the Air Force is responsible for oversight. The firm fixed-price contract type provides cost control, but performance monitoring is still essential to ensure service delivery meets requirements.
Related Government Programs
- Nonscheduled Chartered Freight Air Transportation
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Contract duration is long.
- No small business participation.
- Potential for market rate fluctuations impacting fixed price.
- Dependence on a single large contractor.
Tags
nonscheduled-chartered-freight-air-trans, department-of-defense, az, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $38.4 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. STP-S29A MISSION TASK ORDER
Who is the contractor on this award?
The obligated recipient is NORTHROP GRUMMAN SYSTEMS CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $38.4 million.
What is the period of performance?
Start: 2022-09-30. End: 2026-04-10.
What is the typical cost per flight hour or per ton-mile for similar nonscheduled chartered freight air transportation services?
Benchmarking the per-unit cost against industry standards for nonscheduled chartered freight air transportation is crucial. Factors like aircraft type, range, payload capacity, and specific route requirements influence these costs. Without detailed operational data, a precise benchmark is difficult, but typical rates can range significantly based on market demand and service level agreements.
What are the specific risks associated with a long-term (1288 days) fixed-price contract for air transportation?
Long-term fixed-price contracts carry risks of price escalation if market conditions change unfavorably for the contractor, potentially leading to reduced service quality or contractor default. Conversely, if market rates decrease, the government might overpay. The government's risk is mitigated by the fixed price, but ensuring contractor performance and financial stability throughout the term is vital.
How effectively does this contract support the Air Force's mission readiness and logistical requirements?
The effectiveness hinges on Northrop Grumman's ability to consistently provide reliable and timely nonscheduled chartered freight air transportation as per the contract's terms. Meeting delivery schedules, maintaining aircraft serviceability, and adapting to potential mission changes are key indicators. Regular performance reviews and operational feedback are necessary to gauge its true effectiveness in supporting readiness.
Industry Classification
NAICS: Transportation and Warehousing › Nonscheduled Air Transportation › Nonscheduled Chartered Freight Air Transportation
Product/Service Code: TRANSPORT, TRAVEL, RELOCATION › TRANSPORTATION OF THINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation
Address: 1575 SOUTH PRICE RD, CHANDLER, AZ, 85286
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $38,426,272
Exercised Options: $38,426,272
Current Obligation: $38,426,272
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA881820D0003
IDV Type: IDC
Timeline
Start Date: 2022-09-30
Current End Date: 2026-04-10
Potential End Date: 2026-04-10 00:00:00
Last Modified: 2025-08-26
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